Which of the Following Statements Is TRUE About Contestable Markets

question 64

Multiple Choice

Which of the following statements is TRUE about contestable markets?

• A)There are significant barriers to entry.
• B)Firms earn large economic profits.
• C)Each firm faces a perfectly elastic demand.
• D)There are few firms in the industry.
• E)None of the above.

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Definitions:

Budgetary Requirements

encompass the financial resources needed to support an activity, project, or organization, including estimates of income and expenditures.

Labor Laws

Regulations that govern the relationship between employers and employees, covering aspects such as employment terms, working conditions, and labor rights.

Task Behaviors

Activities and actions taken to achieve a specified objective or complete a job.

Coordination

The organization of different elements or activities in a way that enables them to work together efficiently and effectively.